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Derby Daily Telegraph v Pensions Ombudsman 2

United Kingdom
19/03/1999
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Reference: (1999) OPLR 125

In January 1995, a scheme member gave notice to the newspaper terminating her employment. Since December 1994, she had been absent from work for ill- health. In February 1995, she wrote to the Scheme's administrators saying she wished to take ill health early retirement. The administrator advised that ill-health pensions were awarded at the employers discretion and had to be approved by the group's principal company and advised her to contact the relevant person. She did not. In September 1995, she renewed her claim for an ill-health pension and submitted medical reports. She was refused and complained to the Ombudsman.

The Ombudsman upheld the complaint and directed the newspaper to reconsider her application for an ill-health pension.

The High Court held that where a member was entitled under the scheme rules to an immediate pension if she retired "on the grounds of serious ill-health" (which was stated in the rules to be a question of fact upon which the employer should be the sole judge), the question for the employer was whether her ill health prevented her from carrying out her current job, not whether it prevented her from carrying out any other form of employment. While the employer could relatively easily determine whether or not she could continue in the job she was employed to do, it would be much harder to assess her talents and abilities in any other field and so it was improbable that this was intended.

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